Unilever’s latest financial results for 2024 reveal a company in transformation, doubling down on brand and marketing investments while orchestrating a historic spin-off of its ice cream division.
As the FMCG powerhouse steers shifting consumer dynamics and evolving market conditions, its strategies underscore a commitment to brand equity, premium innovation, and structural agility.
One of the most striking takeaways from Unilever’s 2024 performance is its aggressive push in marketing and brand-building.
The company increased its brand and marketing investment (BMI) by 120 basis points to 15.5% of turnover—an additional €900 million—marking the highest percentage allocation in over a decade.
Over the last two years, Unilever has increased its BMI by 250 basis points, translating to an overall investment surge of €1.6 billion.
This bold move signals a clear strategic focus: amplifying consumer engagement, strengthening brand loyalty, and leveraging premiumisation across its diverse portfolio.
In an era where digital and experiential marketing are redefining consumer touchpoints, Unilever’s increased spend reflects its ambition to stay ahead in a competitive landscape.
Growth Across Key Categories
Despite a 3.7% dip in operating profit to €9.4 billion, Unilever posted a steady underlying sales growth of 4.2%, driven by a 2.9% increase in volume and a 1.3% rise in price.
Beauty & Wellbeing led the charge with a 6.5% sales increase, reinforcing the strength of premium and wellness-driven brands.
Personal Care followed closely with a 5.2% growth, fuelled by robust sales in deodorants—a category that continues to see strong demand worldwide.
Home Care saw a moderate 2.9% increase, balancing innovation with affordability in an inflation-conscious market.
Foods grew by 2.6%, though volume growth remained sluggish at 0.2%, reflecting a softer market and price normalisation.
Ice Cream recorded a 3.7% growth, with premium innovations such as oat-based varieties driving consumer interest.
The Ice Cream Spin-Off: A Game-Changing Move
In a strategic realignment, Unilever is set to separate its ice cream business—home to globally beloved brands such as Ben & Jerry’s and Magnum—through a landmark demerger.
The business will be listed across Amsterdam, London, and New York, with its headquarters remaining in Amsterdam.
The transition, expected to conclude by the end of 2025, marks a pivotal step in Unilever’s ongoing simplification and specialisation strategy.
The move to establish Ice Cream as a standalone entity could unlock greater flexibility for category-focused growth, innovation, and investment.
With Jean-Francois van Boxmeer appointed as Chair Designate, the newly independent ice cream business is poised to carve its niche in the premium frozen dessert market, with sustainability and plant-based innovations at the forefront.
Implications for the Marketing and Advertising Industry
Unilever’s aggressive BMI push underscores the growing importance of sustained brand investment in a competitive, fragmented marketplace.
For marketing professionals and agencies, this signals an increased appetite for strategic partnerships, data-driven consumer insights, and breakthrough creative storytelling.
The company’s commitment to premiumisation also opens up opportunities in influencer marketing, digital engagement, and experiential activations.
The spin-off of the ice cream division presents another compelling narrative.
As an independent entity, the new ice cream business will have a fresh mandate to redefine its brand positioning, potentially exploring new collaborations, localised marketing strategies, and more personalised consumer experiences.
As Unilever strides forward with its dual strategy of aggressive brand investment and business realignment, its decisions will set the tone for FMCG players worldwide.
With consumer preferences evolving rapidly, the ability to balance heritage with innovation, scale with agility, and tradition with transformation will define the next chapter of global brand leadership.
